What makes prediction markets such a competitive advantage for exchanges?

[mendez]

They keep users inside the platform’s ecosystem. Instead of losing traffic to third-party apps, exchanges can offer trading, staking, tokenized assets, and now event forecasting—all in one place. This “everything app” model increases retention, improves monetization, and creates a moat against rivals. Companies like Coinbase and Crypto.com see prediction markets as a core product, not a side feature.

[Rimon Khan]

Prediction markets drive engagement and keep users active, giving exchanges a major edge over traditional trading platforms.

[Nahid Hossen]

Exchanges benefit because prediction markets create continuous liquidity and attract users interested in real-time insights.